The brothers are among those accused in an alleged ₹13,547 crore loss caused to Punjab National Bank. A red corner notice has also been issued against Nehal Modi in the said case. Both the Central Bureau of Investigation and the Directorate of Enforcement (ED) have filed chargesheets against him.
Manhattan District Attorney Alvin Bragg Jr said Modi had been convicted for the fraud caused to LLD Diamonds USA, according to a statement released by his office.
Between March and August 2015, Modi made false representations regarding a purported deal with Costco Wholesale Corporation to obtain more than $2.6 million worth of diamonds from LLD, also known as Lev Leviev diamonds. He then liquidated the diamonds for personal gain. Modi was convicted of grand larceny in the first degree by a New York State Supreme Court jury.
“This scheme unfolded in the heart of New York City’s historic diamond district, where Mr. Modi conned and defrauded a Manhattan business out of millions,” Bragg said. “Here, there was clear and conclusive evidence that Modi obtained these diamonds under false pretences and used them for quick cash,” according to the statement.
Modi approached LLD in March 2015 and asked it to provide several diamonds worth nearly $800,000 to present to Costco.
“…After LLD provided the diamonds, Modi falsely informed the company that Costco had agreed to purchase them. Based on that representation, LLD allowed the defendant to purchase the diamonds on credit, with full payment required within 90 days. Instead of selling the diamonds to Costco, however, Modi pawned them the next day at Modell Collateral Loans, Inc for $450,000 for his personal gain,” the statement added.